Nagham Hassan, Market Analyst at etoro
Abu Dhabi, United Arab Emirates – August, 2026: The UAE’s major banks closed the first half of 2026 in good health, through a period of real strain in the region. Emirates NBD, First Abu Dhabi Bank, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Mashreq, Rakbank and Ajman Bank all grew their balance sheets, drew in deposits, held or improved asset quality, and kept capital well above regulatory minimums.
The headline numbers are strong. ADCB posted record H1 pre-tax profit of AED 7.61 billion, up 28%. ENBD delivered AED 16.2 billion, the largest in the group, and FAB AED 13.2 billion. Mashreq set a record at AED 4.80 billion, up 18%, ADIB grew 9% to AED 4.3 billion, and Rakbank rose 25% to AED 1.88 billion. Ajman held roughly flat.
Nagham Hassan, Market Analyst at etoro, states that the conflict is the backdrop that makes this notable. The Central Bank of the UAE ran a Financial Institution Resilience Package from March through June, offering temporary capital and liquidity relief. The banks barely needed it. Deposits grew across the board, with Mashreq up 28%, ADCB adding AED 27 billion, and Rakbank up 23%. Lending expanded by double digits for most names. There was no deposit flight and no funding squeeze.
Asset quality is the most reassuring part. The share of bad loans fell or held steady at every bank, from Mashreq’s low of 0.9% to ADIB’s 2.2%. Nothing in the reported figures shows borrowers falling behind on repayments.
Two results carried one-off gains worth noting. Mashreq’s profit was lifted by a net impairment writeback of AED 122 million, which included an AED 890 million recovery on loans it had already written off, and Rakbank booked an AED 473 million gain from selling its merchant acquiring business. Neither can repeat, so the strong headline growth at those two banks overstates how much came from ordinary lending and fee income. The larger banks, ADCB, ENBD and FAB, did not lean on items like these.
The pressures are modest. Interest rate cuts have narrowed the gap between what banks earn on loans and pay on deposits. Banks offset that by growing their loan books quickly, which is why lending income still rose across the sector. It also means the growth now leans on lending more rather than on the margin earned on each loan. Two of the biggest banks, ENBD and FAB, set aside extra money for possible future loan losses even though nothing has gone wrong yet, a sign they expect the regional uncertainty to continue.
The share prices reflect all of this. The banks have recovered strongly, and most now trade near their highest levels in six months. Investors are buying the growth and the strong balance sheets, while watching whether thinner margins start to slow returns later in the year.
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